US Tsy are trading modestly.........>

US TSYS SUMMARY: US Tsy are trading modestly lower, with curve shifting

marginally higher having sold off from early morning European highs as German

Bunds slipped lower and Gilts rapidly pared sharp opening gains. Large buy in

Tsy put options and a block sell in TYM8 have also weighed on sentiment.

- US 2-yr yield last +0.5bp at 2.4323%, 10-yr +0.4bp at 2.9137% and 30-yr +0.4bp

at 3.1024%

- US Tsys edged lower in Asia-Pacific hours, although yields edged back from

session highs in the longer end. The move has come alongside an uptick in

USDJPY, and as Fed voter Mester stuck to her hawkish script suggesting that

further hikes are required in '18 & '19.

- The Eurodollar strip having traded steady to 0.5 tick higher during Asia is

now mixed with white and red contracts steady to 0.5 tick higher, while greens

are steady to 0.5 tick lower and blues 0.5 tick lower, volume though is very

light.

- Focus on Friday will fall on speeches from Fed Voter Williams & non-voter

Evans.